Potential Retroactive Pay Due as a Result of CRSC/CRDP

Potential retroactive pay is due for approximately 100,000 retiree accounts.  The accounts affected are those entitled to Combat-Related Special Compensation (CRSC) or Concurrent Retirement and Disability Pay (CRDP) and have been awarded a retroactive increase in a Department of Veterans Affairs (DVA) rated disability.  DFAS has developed procedures with the DVA to provide retirees full entitlement to both DVA compensation and CRSC or CRDP for the DVA retroactive award determination period.  We have worked closely with the DVA to resolve logistical issues required to make the payments. Payments will begin to those eligible in September 2006.  The method to support the large number of eligible retirees through the payment process required may take up to 12 months to complete.  Until the systems are enhanced, manual calculations are being made to determine the appropriate payment amounts for those retirees entitled to additional money from DFAS.  Please be patient as we work through the process with the DVA and simultaneously enhance our systems to calculate these payments automatically.  In some instances, recipients may be entitled to additional compensation from the DVA.  In such instances, the DVA is responsible for the payments and will notify the affected retirees.  Further information will be provided as it becomes available.